That means prosecutors and the FBI won't have to put on a case to try to persuade U.S. Magistrate Judge John Primomo they had probable cause to arrest Lundy on Jan. 3.

Prosecutors are preparing his case to present it to a grand jury for formal indictment, and might change the current charge of theft of honest services by wire fraud.

Lundy was arrested after a joint investigation by the FBI and SAPD.

He has been released on a personal recognizance bond, but court records show agents have obtained warrants to search his home computer, his locker at the North Substation, his patrol car, his personal vehicle and other property.

The warrants said agents were seeking evidence of other graft.

“When the rest of the story comes out, it's going to be explainable,” Brown said.

Lundy is on administrative leave with pay.

Officials said the investigation against Lundy moved quickly after a man called the SAPD internal affairs unit and the FBI.

The man told the FBI that Lundy was one of three officers who responded to an assault call Dec. 15 at the Salado Crossing Apartments, where the man had gotten into an argument with someone else, according to a federal arrest warrant affidavit.

After he admitted having a small amount of marijuana in his car, the man said Lundy detained him and told him he could “help him out” by not filing possession charges if he got $400 in return, according to the affidavit.

The man told Lundy he didn't have the money on him but that he could provide it by Jan. 2.

He was allowed to leave and later received phone calls from a blocked number concerning the payment, which had gone up to $500, the affidavit says.

The agencies said they worked together to set up a surveillance team to track Lundy after he told the man to meet with him at Loop 410 and San Pedro Avenue.

Authorities gave the man a recording device and marked bills for the payoff, which was monitored, the affidavit says.